Zelle fraud

[Indus]

Shouldn't congress address this right away?

Seems Chase and Wells Fargo are the biggest culprits in aiding and abetting fraud

 

[Leeea]

It is not costing the bank any money. If anything, the bank gets that nice income from fees associated with these transfers. Working as designed.

 

[allisolm]

Zelle fraud cases explode, customers lose millions

The popular peer-to-peer money transfer system, Zelle, is owned by seven major banks and is embedded into many online accounts. Transactions are instant and irreversible, which is attractive to cri…

www.wfla.com

Here's a link for those not into non-informative posts.

People are being scammed by crooks into divulging information that allows the crooks to access their zelle accounts and send money, which may or may not have been approved by the account owners. Mostly these customers are not getting any of their money back.

The lack of protection for transfers has always concerned me and I only use it to send money to my children. It is the reason it is not recommended for For Sale/Trade transactions here in the forums. The bank and Zelle told me many times that any transfers could not be reversed. Apparently I, along with many others, was not thinking about scammers. I don't know how liable the bank is if I gave the information required to access my accounts to crooks.

The Consumer Financial Protection Bureau clarified its position on banks’ required compliance with the Electronic Fund Transfer Act of 1978 last year. The CFPB says that “if a third party fraudulently induces a consumer into sharing account access information,” that consumer should receive the same protections as if the money were acquired from a stolen debit card or other banking “access device.”

So, it sounds like the banks need to give more of the money back, but I don't know how much power the CFPB recommendations have. Are they just that - recommendations - or do they have enforceable power?

 

[Drach]

I was wondering why my bank cancelled me from zelle 3 days ago. I never signed up for it in the first place. US Bank

 

[Gardener]

I was wondering why my bank cancelled me from zelle 3 days ago. I never signed up for it in the first place. US Bank

I'd follow up with them with a phonecall ASAP. Although this may be a case where you were automatically enrolled and then disenrolled since there is so much fraud happening now. US Bank is one of the 7 banks that own Zelle.

When any of the Public Interest Research Groups (PIRGs) are involved, pay attention. Those folks pick the right battles.

 

[brycejones]

I was wondering why my bank cancelled me from zelle 3 days ago. I never signed up for it in the first place. US Bank

Us bank has been removing Zelle from accounts where there was no Zelle activity.